Now might be the perfect time to consider investing in real estate in Melbourne.
The Victorian Coalition Government announced that February 25 was "Super Tuesday" in a media release due to the extraordinary number of private residential permits issued. Minister for Planning Matthew Guy said the state government fast tracked five major new high-density housing development in the central city portion of Melbourne.
"The Australian dream of owning your own dwelling is still possible," Mr Guy said.
"With the release of these five towers in Melbourne, new home buyers and others can once again have confidence that the state government is aggressively tackling the housing affordability issue in outer as well as inner city markets. Demand in Melbourne's high-rise, high-density market is strong with recent surveys showing Melbourne now having more apartments being sold than Surfers Paradise."
The "Super Tuesday" permits will translate to more than 2,000 new apartments, $557 million in new construction work and up to 4,000 new construction jobs.
Permit approvals include a 63 storey development boasting 632 apartments at 127-141 A 'Beckett Street and a 55 storey development featuring 466 apartments at 398 Elizabeth Street.
Central Melbourne site of rental properties
Mr Guy said the permit approvals reflect the new Plan Melbourne policy, which is focused on expanding the central business district in Victoria's capital city.
"Melburnians have made it clear that they want their suburbs protected from high-rise apartment development," Mr Guy said.
"To achieve this we're delivering density in defined locations like Melbourne's CBD and the Docklands - not in our quiet suburban streets."
Mr Guy went on to say that Victoria accommodates 25 per cent of Australia's population but accounted for 27 per cent of the country's dwelling approvals over the past year. This highlights just how strong demand for housing is in the region.
The news from Melbourne comes at a time when Bankwest reports that demand for medium density housing - which includes apartment units like those just approved in Victoria's capital - is at its highest level on record.
The Bankwest Housing Density Report shows that while New South Wales overtook Victoria as the state with the largest proportion of medium density approvals during 2013 at 34 per cent, Victoria was close behind at 30.1 per cent.
And with a flood of new apartments heading toward Melbourne's CBD, investing in rental properties in Victoria looks to be a more affordable option than in NSW.
